scholarly journals Generational differences in income trajectories in the Nordic welfare state

2022 ◽  
Author(s):  
Esa Karonen ◽  
Hannu Lehti ◽  
Jani Erola ◽  
Susan Kuivalainen ◽  
Pasi Moisio
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Generational Differences ◽  
Adult Life ◽  
Structural Factors ◽  
Total Income ◽  
Men And Women ◽  
Income Differences ◽  
Income Development ◽  
Nordic Welfare State

How much it matters for your income development what generation you happen to be born? We answer this question by using registers of the total population, we study generational income inequality during 1970–2018 and, for men and women in Finland. We follow the income trajectories of the cohorts born in 1920–1983 over their adult life course and observed, how certain structural factors explain differences in income trajectories. Our study expands state-of-the-art knowledge, as previous research has often bypassed the question of how much generational income differences explains of populations total income inequalities and what factors may explain the different generational income trajectories. Results show that overall generational income differences explained quarter for women and 6 percent for men total income inequality. Each successive cohort until 1980s had a higher average income trajectory. However, generation born in the 1980s has been falling behind. For both men and women, age structure and education were the most important factors associated with income inequality. On contrary to previous findings on Nordic welfare state, our results also indicate that, generational income trajectories are affected by economic shocks.

scholarly journals Sources of Income Inequality in Pakistan

1987 ◽  
Vol 26 (4) ◽  
pp. 659-672 ◽  
Author(s):  
Hans De Kruijk
Keyword(s):  
Income Inequality ◽  
Structural Changes ◽  
Decomposition Analysis ◽  
Relative Importance ◽  
Total Income ◽  
Income Differences ◽  
Inequality Measures ◽  
Urban Rural ◽  
Poverty Indicators ◽  
Over Time

In a paper presented at the 1985 Conference of this Society [Kruijk and Leeuwen (1985)] we described some structural changes in poverty and income inequality in Pakistan during the 1970s. All inequality measures and poverty indicators pointed to the conclusion that poverty has declined while at the same time inequality has increased. However, the paper did not go deep enough into the reasons why inequality has increased. It did appear that neither the urban/rural distinction nor interprovincial income differences are important determinants of overall income inequality in Pakistan 1 so that these elements cannot contribute much to explaining changes in inequality. In his comments, Kernal, (1986) suggests to extend the applied decomposition technique by decomposing income also into its sources. This is precisely the purpose of the present paper. In fact, total income of a household (or any other unit) is the sum of income derived from various sources like labour, property, remittances, etc. Accordingly, income inequality is the aggregate of inequalities of these sources and changes in overall inequality are made up of changes in its components. Decomposition analysis is a clear and consistent framework to investigate these issues. It provides a sense of proportion and avoids to suggest - as some authors do - that overall inequality may have decreased because inequality of one single component has decreased. This kind of speculation is not possible within a decomposition framework because the relative importance of that particular component is taken into account and related to the importance of other components together with their development over time.

scholarly journals INCOME INEQUALITY, MOBILITY, AND THE WELFARE STATE: A POLITICAL ECONOMY MODEL

2012 ◽  
Vol 17 (6) ◽  
pp. 1198-1226 ◽  
Author(s):  
Luca Bossi ◽  
Gulcin Gumus
Keyword(s):  
Income Inequality ◽  
Welfare State ◽  
Social Insurance ◽  
Overlapping Generations ◽  
Tax Rates ◽  
Overlapping Generations Model ◽  
Public Programs ◽  
Transfer Payments ◽  
Set Up ◽  
The Welfare State

In this paper, we set up a three-period stochastic overlapping-generations model to analyze the implications of income inequality and mobility for demand for redistribution and social insurance. We model the size of two different public programs under the welfare state. We investigate bidimensional voting on the tax rates that determine the allocation of government revenues among transfer payments and old-age pensions. We show that the coalitions formed, the resulting political equilibria, and the demand for redistribution crucially depend on the level of income inequality and mobility.

scholarly journals Male Income, Female Income, and Household Income Inequality in Israel: A Decomposition Analysis

2009 ◽  
pp. 34
Author(s):  
Ayal Kimhi
Keyword(s):  
Income Inequality ◽  
Gender Equality ◽  
Ethnic Minorities ◽  
Household Income ◽  
Decomposition Analysis ◽  
Female Education ◽  
Total Income ◽  
Good For ◽  
Income Variability ◽  
Positive Effect

Differentiating between the sensitivity of income inequality to male income and female income and decomposing inequality by income determinants, we find that total income inequality is less sensitive to female income variability or the level of female income, than to male income variability or the level of male income. Uniform increases in education reduce income inequality, with increases in female education having a larger effect than increases in male education. An increase in the population fraction of ethnic minorities has a positive effect on inequality, but this operates mostly through female income. All this suggests that female income is the most adequate target for inequality-reducing policy, and that within-household gender equality is good for reducing income inequality among households.

scholarly journals Working-hour Trends in the Nordic Countries: Convergence or Divergence?

2019 ◽  
Author(s):  
Aart-Jan Riekhoff ◽  
Oxana Krutova ◽  
Jouko Nätti
Keyword(s):  
Gender Gap ◽  
Working Hours ◽  
Annual Data ◽  
Structural Factors ◽  
Age Group ◽  
Men And Women ◽  
Time Work ◽  
Part Time ◽  
Part Time Work ◽  
Working Hour

In this article, we investigate changes in usual working hours and part-time work in Denmark, Finland, Norway, and Sweden in recent decades. We analyze whether convergence or divergence occurred between countries, between men and women, and between men and women in each country. We use annual data from the European Labor Force Survey to identify trends between 1996 and 2016 (N = 730,133), while controlling for a set of structural factors. The findings suggest a degree of divergence between countries: usual working hours and the incidence of part-time work were relatively stable in Finland and Sweden, while working hours decreased in Denmark and Norway. The latter is partly driven by a decline among the 15–29 age group. The gender gap in working hours and part-time work was closed somewhat, in particular due to a rise in part-time work among men and a decline among women in Norway and Sweden.

scholarly journals The Nordic difference: Job quality in Europe 1995–2010

2012 ◽  
Vol 2 (4) ◽  
pp. 135 ◽  
Author(s):  
Tomi Oinas ◽  
Timo Anttila ◽  
Armi Mustosmäki ◽  
Juoko Nätti
Keyword(s):  
Welfare State ◽  
Working Conditions ◽  
Nordic Countries ◽  
Job Quality ◽  
The Other ◽  
European Working ◽  
European Working Conditions Survey ◽  
Advantageous Position ◽  
Nordic Welfare State ◽  
The Eu

Previous empirical research has pointed out that Nordic countries are distinguished from the rest of Europe in terms of job quality. On the other hand, it has been debated whether, in the longer run, the Nordic welfare state is able to insulate workers from globalization effects. This article investigates whether Nordic countries have retained their advantageous position concerning job quality compared with other EU countries. Empirical analyses are based on the European Working Conditions Survey collected in 1995, 2000, 2005, and 2010. We use data on employees in the 15 member states of the EU prior to enlargement in 2004 (n = 61,457). The results partly confirm previous findings of high job quality in the Nordic countries. However, there are clear differences between Nordic countries. To be precise, Denmark stands out from the rest of Europe and other Nordic countries with its higher level of job quality.

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